Who’s using Futures Pricing…and why?

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For too long, oil and gas stakeholders – including producers, development teams, financial institutions, and industry associations – have spent their time and resources trying to find reliable market prices against which to value their assets. Thanks to Futures Pricing, the days of pulling mountains of data from numerous sources are over.

Put simply, Futures Pricing is about data consolidation. It pulls prices from the market and organizes them into convenient, useable content for stakeholders to analyze. It’s about saving you and your team from the distraction of collecting and organizing your data, so you can focus on what’s important – work.

According to Justin Mogck, GLJ’s Director of Commodities Research, Futures Pricing is most widely being utilized by oil and gas producers. 

“Oil and gas producers make up the product’s largest user base, as it’s important to them to know the current value of their assets at market prices,” explains Mogck. “With Futures Pricing, producers can quickly plug current futures prices into their economic models in order to keep on top of the value of their assets.”

Futures Pricing also provides benefits to a variety of other oil and gas stakeholders. For example, Futures Pricing can be a helpful, cost-saving tool for international oil and gas producers who are unfamiliar with the marketing dynamics of the Canadian oil and gas industry.

“By receiving this information from a reputable Canadian organization that can defend its numbers (including local secondary product prices),” says Mogck, “companies with less experience in North America and Western Canada can be confident that they are using appropriate prices.”

Business development teams interested in acquiring new assets are also using Futures Pricing, as well as Financial institutions who are continually stress testing assets when determining whether a client’s current market value covers its debt obligations or when examining a line of credit and the value they’re lending against.

Last but not least, oil and gas industry associations are using Futures Pricing as part of their basket of inputs for industry studies and publications, and appreciate the instant usability of the information.

“Often it can be challenging and time consuming to find or calculate prices for oil and gas products or sales points, especially when they are not published on common trading or market sites.” Says Mogck. “Futures Pricing eliminates that challenge, tabulating current market pricing for a variety of products from multiple sources, saving you and your team time, and increasing productivity.”

With Futures Pricing, you can get updated par pricing based on current market prices which are necessary for accurate royalty determinations. Don’t spend another hour, or dollar, sifting through data when you can be receiving accurate, consistent information daily, weekly, or monthly – according to your schedule.


For more information about Futures Pricing or to subscribe, visit  https://gljinsights.com.